Investment Update

23 February 2016

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Starwood European Real Estate Finance Limited: Investment Update

Starwood European Real Estate Finance Limited (the "Company") announces that it has advanced a £26.95million whole loan in relation to a hotel in the Channel Islands. This specific hospitality submarket is demonstrating solid performance and the asset being financed is the market leader. Such an investment is not only attractive on its own merits but also further delivers geographical and sector diversity to the overall portfolio. 

The fixed rate facility has a term of 5 years and the Company expects to earn an attractive risk-adjusted return in line with its stated investment strategy.

The new investment has been funded with drawings on the revolving credit facility. It remains the company's intention to continue to the draw on the facility in the near term to optimise liquidity management of potential loan repayments and, once addressed, future equity issuance. 

For further information, please contact:

For further information, please contact:

Peter Denton - Starwood Capital - 020 7016 3664

Robert Peel - Dexion Capital - 020 7832 0900

Notes:

Starwood European Real Estate Finance Limited is an investment company listed on the main market of the London Stock Exchange with an investment objective to provide Shareholders with regular dividends and an attractive total return while limiting downside risk, through the origination, execution, acquisition and servicing of a diversified portfolio of real estate debt investments (including debt instruments) in the UK and the wider European Union's internal market. www.starwoodeuropeanfinance.com.

The Company's assets are managed by Starwood European Finance Partners Limited, an indirect wholly-owned subsidiary of the Starwood Capital Group.